29 Jun 2026

Bank of Botswana (BoB) Governor, Mr Lesego Moseki, has indicated that Botswana remains well-positioned to bounce back from the current economic slump due to its strong and stable financial institutions.

Briefing the media during the release of the 2025 financial report, Mr Moseki stated that Botswana’s financial systems remain solid despite prolonged geopolitical tensions, evolving trade arrangements, and persistent uncertainty in the global economy. 

Despite current challenges, the country continues to benefit from strong institutions, prudent macroeconomic management, and a longstanding reputation for policy credibility and good governance that underpins its investment-grade sovereign rating, he said.

These trends, he said, had enabled Botswana to navigate difficult periods in the past and provide a solid foundation for recovery and long-term prosperity.

Mr Moseki noted that even as the diamond sector had faltered, other minerals and commodities appear to have good prospects globally and within the domestic economy. 

Moreover, the non-mining economy has continued to expand, albeit at a slower pace, reflecting spare capacity.

“The pace of transformation, adaptation, and implementation remains insufficient relative to the scale of the challenges confronting the economy, as well as the desired national development objectives,” he said.

Notably, lower mineral revenues have put pressure on government finances and foreign exchange reserves, reducing the policy space available to respond to economic shocks. 

Furthermore, these developments, which continue to weigh down Botswana’s economic performance and fiscal position, had exposed the vulnerabilities associated with a narrow export base at a time when financial buffers have been substantially eroded.

Mr Moseki highlighted the importance of policy reforms to restore fiscal sustainability and rebuild buffers. 

He expressed optimism that the BoB would assist the country in navigating the economic downturn and remained steadfast in supporting beneficial reforms and structural transformation.

Additionally, he highlighted the need for institutional leadership across governments, state-owned enterprises, and the private sector to commit to structural reforms, productivity enhancements, and implementation discipline.

“The imperative is not merely to recover from cyclical weaknesses in the diamond market, but to build a more diversified, resilient, and competitive economy capable of generating sustainable and inclusive growth, irrespective of developments in a single sector,” he said.

To that effect, he noted that it is essential for the government to lead in its commitment to the Botswana Economic Transformation Programme (BETP) and the priorities articulated in the National Development Plan 12 (NDP 12). 

This provides an important framework for achieving economic diversification, resilience, and inclusive welfare outcomes. 

Mr Moseki further stated that the current environment presents an opportunity to accelerate initiatives that strengthen domestic productive capacity, deepen export diversification, and enhance participation in regional and global value chains to unlock new sources of growth.

He concluded that the emphasis on private sector-led growth, human capital development, infrastructure modernisation, and digital transformation was both timely and appropriate. ENDS